Without IMF agreement, Pakistan is at risk of default: Bloomberg - SUCH TV
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The International Monetary Fund’s (IMF) criticism of Pakistan’s latest budget suggests chances are rising that the lender will opt not to deliver long-awaited aid before its bailout programme finishes at the end of June, Bloomberg reported. “This would cause a severe dollar shortage in the first half of the fiscal year that starts in July, and possibly for longer — significantly raising the odds of default, Bloomberg economist Ankur Shukla said in the report, Pakistan Insight. “It would also raise the prospect of much lower growth, and higher inflation and interest rates than we currently anticipate in fiscal 2024.” The IMF criticised the budget for not taking enough steps to broaden the tax base and for including a tax amnesty. The country’s foreign currency reserves currently stand at $4 billion. With at least around $900 million in debt that must be repaid this month, the reserves will fall by June-end unless the IMF aid comes. Between July-December, Pakistan mus